Forget basketball and March Madness. Aside from always pressing financial issues, it is "MOOC madness" that has emerged as the topic "du jour" at a growing number of American colleges and universities. Indeed, in boardrooms all across the country, people are grappling with what the advent of MOOCs--massive open online courses--means to their…

The strategic plan represents an institution's top priorities. Yet colleges commonly set aside financial resources to pursue them only after investing in maintaining the status quo. When building a budget, boards should focus on putting institutional assets at the center of the process and aligning fiscal decisions with their college's mission and…

Moody's Investors Service provides credit ratings for hundreds of private and public colleges and universities--ratings that can strongly influence the interest rates higher-education institutions can obtain when they want to borrow money. How colleges are governed and managed are key determinants of those credit ratings, especially in an…

The downturn in the economy of the author's state, North Carolina, so far is less severe than that of much of the rest of the nation, due to their diversified economy, financial discipline, constitutional mandate for a balanced budget, "rainy day" fund, and many years of consistent investment in higher education. In the University of…

Public-private partnerships aren't new in higher education. But, in 2012, some especially compelling financial reasons accelerated development of public-private partnerships between public universities and private entities in their communities. Public institutions have never been under more pressure to find alternative sources of revenue to help…

Presidents and boards deal with great uncertainty all the time. Today, however, many of them also face a troubling certainty: Business as usual is the road to failure. The trend lines of revenue and expense, once aided by marginal income from growing enrollments, once amenable to marginal annual balancing tweaks, and once cushioned by reserves,…

Strategic finance is aligning financial decisions--regarding revenues, creating and maintaining institutional assets, and using those assets--with the institution's mission and strategic plan. The concept known as "strategic finance" increasingly is being seen as a useful perspective for helping boards and presidents develop a sustainable…

With all the trials and tribulations, the job of a university president is one of the most rewarding. Yet, like every other aspect of society, the academic presidency has changed over the last several decades. A surprise turn of events gave the author an opportunity to reflect on the "then and now" question. Having served as president of…

"Spectacular error" sounds euphemistic compared to "devastating," "catastrophic," or "meltdown"--terms more commonly summoned to describe the credit crisis and ensuing global economic carnage. Whatever they are labeled, gross miscalculations on Wall Street are having a deleterious effect on college campuses across the country, with many…

Colleges and universities, like corporations and other nonprofit organizations, are subject to periodic fluctuations in the economy and public support. Thus, the question is not whether they will confront financial problems but rather when and how. This article describes how institutions and boards can detect budgets in crisis, provides principles…

Discusses how governing boards can help their institutions weather the "double-whammy" of doing more with less: identify the institution's short-term and long-term challenges; refocus the institution's mission, planning, and programming; assess and integrate the institution's tuition, aid, and outreach strategies; redouble the…

The counterintuitive approach of the world's greatest value investor, Warren Buffett, may be the best hope for colleges and universities during this recession. Buffett's time-tested philosophy of seeking value and investing for the long term remains a sound approach, even if his short-term returns have declined along with those of the rest of the…

Three former senior academic officers, all later to become college presidents, offer best practices for governing board members and chief academic officers (CAOs) on participatory governance, strategic resource planning, and relationships among the CAO, the trustees, and the president. Topics addressed include an effective institutional governance…

The history and strategy behind the Muskingum College (Ohio) decision to reduce tuition by one-third are explained. The policy was adopted as part of a strategic plan to increase enrollment, improve entering students' test scores, boost student diversity, and slow the increase in the percentage of institutional budget earmarked for student…

As campuses react to budget cuts and increasing programmatic demands, the competition for resources among constituencies is increasingly intense. In this environment, reinvesting in campus facilities becomes challenging because, quite simply, the financial commitment can be immense. Unfortunately, many campus constituencies fail to understand the…